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Packed hearings. Facebook organizing. Complaints about prime farmland and a disappearing way of life. Sound familiar?

Solar and wind companies cite the rise of artificial intelligence to make their business cases after the United States government slashed massive tax incentives for their projects.
But the data centers supposed to power the AI boom are now facing the sort of swift wave of rejections from local governments across the country eerily similar to what renewables developers have been dealing with on the ground over the last decade. The only difference is, this land use techlash feels even more sudden, intense, and culturally diffuse.
What’s happening is simple: Data centers are now routinely being denied by local governments in zoning and permitting decisions after local residents turn against them. These aggrieved denizens organize grassroots campaigns, many with associated Facebook groups, and then flood city council and county commission hearings.
Just take this past week. Last Thursday, Prince George’s County, Maryland, paused all data center permitting after a campaign against converting an abandoned mall into a data center gained traction online, with a petition garnering more than 20,000 signatures. On Monday, faced with a ferocious public outcry, Google rescinded a proposal to build what would’ve been its second data center in Indiana in Franklin Township, a community in southeastern Indianapolis – a withdrawal requested mere minutes before the township council was reportedly going to reject it.
That same day, the rural Illinois town of DeKalb denied a solar company’s request to build a “boutique data center” on the same site as a previously-permitted solar farm. And on Tuesday, the small city of Howell – located smack between Lansing and Detroit, Michigan – denied a data center proposed by an anonymous Fortune 100 company. Apparently, so many people showed up to voice their opposition to the project that the hearing was held in a high school gymnasium.
Opponents cite many things in their arguments against development, some unique to the sector like energy and water use, and others familiar to the solar and wind industry, like preserving prime farmland or maintaining a way of life.
These arguments are incredibly salient, as polling conducted by Heatmap News has revealed: less than half of Americans would ever support a data center coming near them, and this technology infrastructure is less popular than any form of renewable energy. Digging into the cross-tabs of that poll, data centers are unpopular with essentially all age demographics, and arguments against the facilities – like “they use too much water” or “they consume too much electricity” – get relatively similar agreement from registered Democrats and Republicans alike.
Ben Inskeep, a clean energy advocate in Indianapolis, told me he started fighting data centers last year after he became aware of the total power needed to fuel the rising number of projects in the state. His advocacy organization, Citizens Action Coalition of Indiana, previously weighed in on rate hikes and electricity generation decisions. Now, they’re tracking more than 40 data center projects they say are proposed in the state and getting involved in the fight on the ground against them.
Inskeep told me that, from his point of view, the primary support for data centers comes from local governments and municipally-funded works like schools and health facilities that are facing slashed budgets. In some cases the projects are being rejected despite representing millions – even billions – in capital investments and potential tax revenues so large that municipal governments are put between a rock and a hard place as they’re pressured by a weakening economy and state funding cuts.
That’s what happened in Indianapolis. Earlier this month the school district that would’ve been funded by the now-rejected Google data center came out in support of the project, declaring it would welcome new tax revenue, and said it would also lead to new educational partnerships with the tech giant. But none of that mattered. Some local officials even lambasted their colleagues' support as unwarranted, a lashing out that reminds me of what happens to pro-solar officials in Ohio.
Heatmap News has been tracking contested data center projects since the spring of this year and has found almost 100 projects under development across the country that are being actively fought by local organizers, citizens advocacy groups, and environmental organizations. The data is preliminary and likely an undercount.
Still, there’s lots to glean from it. Crucially, as we’ve seen with renewable energy development, data center opposition crops up most often in tandem with the number of projects proposed and constructed. This is only logical: the more of something that is built in a place, the more likely people are to say, “We’ve built enough of that.” This is why Virginia is the top state when it comes to data centers being opposed – it’s a hub that’s seen development spike for far longer than elsewhere in the United States.
I believe that as data center project proposals continue to rise across the country, we’ll see in parallel rising hostility to their development – potentially much larger than anything renewable energy has ever faced. It will undoubtedly also be a problem for anyone in solar or wind who is riding on an AI boom to add demand for their projects.
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It’s now clear that 2026 will be big for American energy, but it’s going to be incredibly tense.
Over the past 365 days, we at The Fight have closely monitored numerous conflicts over siting and permitting for renewable energy and battery storage projects. As we’ve done so, the data center boom has come into full view, igniting a tinderbox of resentment over land use, local governance and, well, lots more. The future of the U.S. economy and the energy grid may well ride on the outcomes of the very same city council and board of commissioners meetings I’ve been reporting on every day. It’s a scary yet exciting prospect.
To bring us into the new year, I wanted to try something a little different. Readers ask me all the time for advice with questions like, What should I be thinking about right now? And, How do I get this community to support my project? Or my favorite: When will people finally just shut up and let us build things? To try and answer these questions and more, I wanted to give you the top five trends in energy development (and data centers) I’ll be watching next year.
The best thing going for American renewable energy right now is the AI data center boom. But the backlash against developing these projects is spreading incredibly fast.
Do you remember last week when I told you about a national environmental group calling for data center moratoria across the country? On Wednesday, Senator Bernie Sanders called for a nationwide halt to data center construction until regulations are put in place. The next day, the Working Families Party – a progressive third party that fields candidates all over the country for all levels of government – called for its candidates to run in opposition to new data center construction.
On the other end of the political spectrum, major figures in the American right wing have become AI skeptics critical of the nascent data center buildout, including Florida Governor Ron DeSantis, Missouri Senator Josh Hawley, and former Trump adviser Steve Bannon. These figures are clearly following the signals amidst the noise; I have watched in recent months as anti-data center fervor has spread across Facebook, with local community pages and groups once focused on solar and wind projects pivoting instead to focus on data centers in development near them.
In other words, I predicted just one month ago, an anti-data center political movement is forming across the country and quickly gaining steam (ironically aided by the internet and algorithms powered by server farms).
I often hear from the clean energy sector that the data center boom will be a boon for new projects. Renewable energy is the fastest to scale and construct, the thinking goes, and therefore will be the quickest, easiest, and most cost effective way to meet the projected spike in energy demand.
I’m not convinced yet that this line of thinking is correct. But I’m definitely sure that no matter the fuel type, we can expect a lot more transmission development, and nothing sparks a land use fight more easily than new wires.
Past is prologue here. One must look no further than the years-long fight over the Piedmont Reliability Project, a proposed line that would connect a nuclear power plant in Pennsylvania to data centers in Virginia by crossing a large swathe of Maryland agricultural land. I’ve been covering it closely since we put the project in our inaugural list of the most at-risk projects, and the conflict is now a clear blueprint.
In Wisconsin, a billion-dollar transmission project is proving this thesis true. I highly recommend readers pay close attention to Port Washington, where the release of fresh transmission line routes for a massive new data center this week has aided an effort to recall the city’s mayor for supporting the project. And this isn’t even an interstate project like Piedmont.
While I may not be sure of the renewable energy sector’s longer-term benefits from data center development, I’m far more confident that this Big Tech land use backlash is hitting projects right now.
The short-term issue for renewables developers is that opponents of data centers use arguments and tactics similar to those deployed by anti-solar and anti-wind advocates. Everyone fighting data centers is talking about ending development on farmland, avoiding changes to property values, stopping excess noise and water use, and halting irreparable changes to their ways of life.
Only one factor distinguishes data center fights from renewable energy fights: building the former potentially raises energy bills, while the latter will lower energy costs.
I do fear that as data center fights intensify nationwide, communities will not ban or hyper-regulate the server farms in particular, but rather will pass general bans that also block the energy projects that could potentially power them. Rural counties are already enacting moratoria on solar and wind in tandem with data centers – this is not new. But the problem will worsen as conflicts spread, and it will be incumbent upon the myriad environmentalists boosting data center opponents to not accidentally aid those fighting zero-carbon energy.
This week, the Bureau of Land Management approved its first solar project in months: the Libra facility in Nevada. When this happened, I received a flood of enthusiastic and optimistic emails and texts from sources.
We do not yet know whether the Libra approval is a signal of a thaw inside the Trump administration. The Interior Department’s freeze on renewables permitting decisions continues mostly unabated, and I have seen nothing to indicate that more decisions like this are coming down the pike. What we do know is that ahead of a difficult midterm election, the Trump administration faces outsized pressure to do more to address “affordability,” Democrats plan to go after Republicans for effectively repealing the Inflation Reduction Act and halting permits for solar and wind projects, and there’s a grand bargain to be made in Congress over permitting reform that rides on an end to the permitting freeze.
I anticipate that ahead of the election and further permitting talks in Congress, the Trump administration will mildly ease its chokehold on solar and wind permits because that is the most logical option in front of them. I do not think this will change the circumstances for more than a small handful of projects sited on federal lands that were already deep in the permitting process when Trump took power.
It’s impossible to conclude a conversation about next year’s project fights without ending on the theme that defined 2025: battery fire fears are ablaze, and they’ll only intensify as data centers demand excess energy storage capacity.
The January Moss Landing fire incident was a defining moment for an energy sector struggling to grapple with the effects of the Internet age. Despite bearing little resemblance to the litany of BESS proposals across the country, that one hunk of burning battery wreckage in California inspired countless communities nationwide to ban new battery storage outright.
There is no sign this trend will end any time soon. I expect data centers to only accelerate these concerns, as these facilities can also catch fire in ways that are challenging to address.
Plus a resolution for Vineyard Wind and more of the week’s big renewables fights.
1. Hopkins County, Texas – A Dallas-area data center fight pitting developer Vistra against Texas attorney general Ken Paxton has exploded into a full-blown political controversy as the power company now argues the project’s developer had an improper romance with a city official for the host community.
2. La Plata County, Colorado – This county has just voted to extend its moratorium on battery energy storage facilities over fire fears.
3. Dane County, Wisconsin – The city of Madison appears poised to ban data centers for at least a year.
4. Goodhue County, Minnesota – The Minnesota Center for Environmental Advocacy, a large environmentalist organization in the state, is suing to block a data center project in the small city of Pine Island.
5. Hall County, Georgia – A data center has been stopped down South, at least for now.
6. Dukes County, Massachusetts – The fight between Vineyard Wind and the town of Nantucket seems to be over.
A catch-up with kWh Analytics’ Jason Kaminsky.
This week’s conversation is a catch-up chat with Jason Kaminsky of kWh Analytics, an insurance firm that works with renewable energy developers. I reached out to Kaminsky ahead of the new year because as someone with an arms-length distance from development, I find he is able to speak more candidly about market dynamics and macro-level trends – as well as the fears many have in rural communities about energy project failures, like battery fires. Seeing as the theme this week felt like “data centers forever,” I also thought it would be good to get up to speed on what he’s most focused on in that space, too.
The following conversation has been lightly edited for clarity.
Okay so, Jason – is renewable energy actually benefiting from the data center boom?
Renewables are supporting our load growth boom. Data centers are about a third of the projected load growth. So it is certainly a key component of what is driving demand broadly, but not the only component. The other pieces worth considering are the electrification of transportation, the reindustrialization of America, and the electrification of residential homes. But data centers are getting enthusiasm because of how quickly people are trying to deploy them.
The unique benefit renewables have is that they’re able to deploy quickly, and you need the benefits that storage has to handle these load centers.
How rapidly is the data center buildout and its associated infrastructure buildout actually happening, and how rapidly is this demand curve actually rising?
Remember, we’re not a developer on the front line, and a developer on the front line might have a better answer to this. But I’d say most of the activity today in the data center space is still quite a ways out. It’s either linked to a new facility or the planning of a new facility. Now, granted, we’re seeing it quite late in the process because we’re the insurance company, and so from an operational perspective, we’re not seeing it in the numbers yet. But it is in the forecasts, which is what you’re seeing, as well.
When it comes to concerns about renewable energy development at the local level, the last time we spoke was about project risk and the extent to which projects face weather risks, fire risks. Do data centers face these same kinds of risks?
The data center development ecosystem parallels very closely with the project development ecosystem with renewables.
What I mean by that is you have a few mega-developers, like the NextEras of the world, but instead it’s Meta and Google building these massive centers, these 800-pound gorillas. Then you have these companies that are equivalent to [independent power producers], a lot of people building mid-size to small-size data centers, and either building them on spec or with long-term contracts. Within that you have very different community engagements and quality, different power generation strategies and siting strategies, but there’s no universal data center approach. It’s a very stratified data center ecosystem.
It probably compounds the problem because you have more land being used. There are stories like the X data centers not getting permits for their generators, and resulting local pollution. There have been concerns in the media about heat effects and the way data centers use so much water.
Before, though, renewables were the focus. Now data centers are the focus and renewables are just kind of along for the ride.
Has the conversation around the renewable energy sector and its project-level business risks evolved in the year since we last spoke? Have data centers changed the conversation?
I would say that from a micro perspective, as you start pairing these facilities with data centers, one of the things you have to think about from a risk management perspective and the insurance perspective is the lost revenue due to a failure.
Generally, that’s electricity sales. There’s something called business income insurance, which, if you have a loss of a facility, you pay for lost revenue. But if you’re paired with a data center and your lost income is now compute income, your business income exposure can be much higher. So the resiliency of an asset or the reliability of an asset becomes that much more valuable and expensive.
I don’t think we’ve seen a lot of that yet in our ecosystem, but I think it’s coming.
What is your biggest prediction in the renewable energy space next year?
I think that the risk of China building more data centers than us and getting ahead of us in the race for AI – and the risk of energy inflation – is going to make some of these problems easier to solve from a risk perspective.
My hope is that the fear of being left behind and the fear of risk associated with energy inflation will lead to legislators allowing for more quick-to-deploy, cheap and clean power going to the grid. Renewables will find a way onto the grid. With just a little bit of legislative guidance and pathway, a lot can happen.